Bill Number: S. 282
Short Title: Transition to Competition in the Electric Industry Act
Introduced: January 21, 1999
Sponsor: Senator Connie Mack (R-FL)

Purpose: To provide that no electric utility will be required to enter into a new contract or obligation to purchase or to sell electricity or capacity under Section 210 of the Public Utility Regulatory Policies Act of 1978.

Summary:States that no electric utility shall be required, under the Public Utility Regulatory Policies Act of 1978 (PURPA), to enter into a new contract or obligation to purchase or sell electricity or capacity from or to qualifying cogeneration and small power production facilities. Requires the Federal Energy Regulatory Commission to promulgate and enforce regulations designed to ensure that no electric utility shall be required to absorb the costs associated with purchases of electric power or capacity from a qualifying facility pursuant to PURPA obligations before enactment of this Act.

Bill Number: S. 516
Short Title: Electric Utility Restructuring Empowerment and Competitiveness Act of 1999
Introduced: March 3, 1999
Sponsor: Senator Thomas Craig (R-WY)

Purpose: To benefit consumers by promoting competition in the electric power industry, and for other purposes.

Summary:  Amends the Federal Power Act to prescribe parameters within which a State may: (1) exercise jurisdiction over retail electric supply or distribution service provided to retail customers within its borders; (2) establish and enforce electric energy performance standards; (3) exercise authority over retail transactions (including the imposition of surcharges); and (4) require electric energy suppliers to provide wholesale and retail reciprocity with respect to open, nondiscriminatory transmission access and local distribution access. (Sec. 3) Provides that the purchase of electricity for ultimate consumption by either a Federal entity or mixed-ownership government corporation shall be subject to the laws of the State in which such consumption occurs with respect to the choice of supplier and other conditions of the purchase. Retains State prerogative to require electricity retailers to assist in providing universal service. (Sec. 4) Removes wholesale sales of electric energy from Federal regulatory purview. Retains State authority over retail electric energy sales. Grants the Federal Energy Regulatory Commission (FERC) jurisdiction over wholesale electric transmission services. (Sec. 5) Instructs the Inspector General of the Department of the Treasury to report to Congress regarding the impact of specified tax provisions upon the promotion of a competitive retail electricity market. (Sec. 6) Amends the Public Utility Regulatory Policies Act of 1978 to exempt an electric utility beginning commercial operation after the date of enactment of this Act from the requirement to enter into a new contract or obligation to purchase or sell electric energy or capacity pursuant to the provisions governing cogeneration and small power production. (Sec. 7) Repeals the Public Utility Holding Company Act of 1935. Prescribes procedural guidelines for both FERC and State access to records of a holding company of a public utility or natural gas company (including subsidiaries, associates, and affiliates). Instructs FERC to promulgate a final rule to exempt specified holding companies from such access requirements. Requires FERC to exempt any person or transaction from such access requirements if it finds that regulation of such person or transaction is irrelevant to the jurisdictional rates of a public utility company. Retains the jurisdiction of FERC and State commissions to determine whether a public utility company may recover in rates any costs of affiliate transactions. Declares specified provisions of this Act inapplicable to: (1) the United States; (2) a State or its political subdivision; and (3) a foreign governmental authority not operating in the United States. Grants FERC certain Federal Power Act enforcement powers. Transfers from the Securities and Exchange Commission to FERC all books and records that relate primarily to the functions vested in FERC by this Act. Amends the Federal Power Act to repeal its conflict of jurisdiction guidelines. Authorizes appropriations. (Sec. 8) Amends the Federal Power Act (FPA) to confer jurisdiction upon FERC over the electric reliability organization (ERO) (established by this Act), affiliated regional reliability entities, all system operators, and all bulk-power system users for purposes of approving organization standards and enforcing FPA compliance. Authorizes the North American Electric Reliability Council and its member Regional Reliability Councils to submit to FERC any proposed mandatory reliability standard, guidance, or practice. Prescribes the FERC review and approval process. Directs FERC to promulgate regulations governing the designation of an ERO. Prescribes procedural guidelines governing: (1) applications and designations for ERO status; and (2) modification of ERO standards. Requires each bulk power system user to comply with such standards. Requires the ERO to take all appropriate steps to gain recognition by the governments of, and the industry in, Canada and Mexico. Requires the United States to use its best efforts to enter into agreements with such governments to provide for: (1) compliance with ERO standards; and (2) ERO efficacy in implementing its mission and responsibilities. Sets forth procedural guidelines for: (1) changes in ERO procedures, governance, or funding; (2) delegations of authority; (3) mandatory ERO membership for each system operator; (4) ERO disciplinary actions against a bulk-power system user; and (5) FERC compliance orders. Requires the ERO to conduct periodic assessments of the reliability and adequacy of the interconnected bulk-power system in North America and to report thereon to the Secretary of Energy and to FERC. Provides for the assessment and recovery by the ERO and each affiliated regional reliability entity of certain implementation and enforcement costs. Shields from antitrust liability certain activities undertaken by either the ERO or an affiliated regional reliability entity. Directs the Secretary of Energy to establish on the petition of the Governors of two-thirds of the States within a region that have more than one-half of their electrical loads served within the region, a regional advisory body to advise FERC, the ERO, or an affiliated regional entity with respect to governance and proposed standards and fees.

Bill Number: S. 1047
Short Title: Public Utility Holding Company Act of 1999 and Comprehensive Electricity Competition Act
Introduced: May 13, 1999
Sponsor: Senator Frank Murkowski (R-AK)

Purpose: To provide for a more competitive electric power industry, and for other purposes.

Summary: Title I: Retail Electric Service - Amends the Public Utilities Regulatory Policies Act of 1978 (PURPA) to set a specified date by which each electric energy distribution facility is required to offer consumers open access to its facilities for electric energy sales (retail competition requirement). (Sec. 101) Authorizes a State regulatory authority to direct a distribution utility not to implement the retail competition requirement if it finds that implementation would have a negative impact upon a class of customers that cannot be reasonably mitigated. Authorizes a nonregulated distribution utility on its own to make the same determination. Requires a State regulatory authority or nonregulated distribution utility that: (1) conducts a public proceeding before a distribution utility implements retail competition to consider recovery of retail stranded costs if the utility has taken reasonable steps to mitigate such costs (including assistance for former electric utility workers unemployed as a result of retail competition implementation); and (2) permits a charge to recover retail stranded costs to consider reducing such charge on a consumer who uses electric energy produced on-site when the charge results from the use of certain new on-site generation sources. Authorizes any person to bring an action in State court against either a State regulatory authority, distribution utility, or a nonregulated distribution utility for noncompliance with this Act. (Sec. 102) Authorizes a State regulatory authority to enjoin a distribution utility (and affiliate) located in the United States over which it does not have ratemaking authority from selling electric energy to electric consumers of a distribution facility covered by the notice of retail competition, unless a notice of retail competition has been filed with respect to the other distribution utility (reciprocity requirements). Grants the same authority to a nonregulated distribution utility. (Sec. 103) Permits a group of customers to acquire retail electric energy on an aggregate basis if it is served by distribution utilities for which a State regulatory authority or nonregulated distribution utility has filed a notice of retail competition. Title II: Consumer Protection - Prescribes guidelines for consumer information disclosure by an electric utility and attendant enforcement by State and Federal agencies. (Sec. 202) Requires each State regulatory authority or nonregulated distribution utility filing a notice of retail competition to conduct a proceeding to determine whether to apply specified principles for providing electric service to low-income residential consumers. (Sec. 203) Amends the Federal Trade Commission Act to direct the Federal Trade Commission (FTC) to promulgate rules for: (1) verification of a retail electric customer's selection of a retail electric supplier ("slamming"); and (2) obtaining retail electric customer consent for the purchase of goods and services ("cramming"). Permits complementary State proceedings and remedies. (Sec. 204) Authorizes the Secretary of Energy (the Secretary) to compile a database to provide residential electric consumers with information to compare offers of various retail electric suppliers. Directs the Secretary to develop a model code for: (1) regulation of retail electric suppliers for the protection of electric consumers; and (2) safety standards for electric facility workers. Title III: Facilitating State and Regional Regulation - Amends the Federal Power Act (FPA) to declare that it does not preempt or otherwise affect any authority under State or local municipal law to: (1) require unbundled transmission and local distribution services for electric energy delivery directly to an ultimate consumer; or (2) impose a delivery charge on such consumer's receipt of electric energy. Retains the exclusive jurisdiction of the Federal Energy Regulatory Commission (FERC) over unbundled transmission in interstate commerce. (Sec. 301) Authorizes FERC to: (1) require public utilities and transmitting utilities to provide open access transmission services; (2) permit recovery of stranded costs arising from any requirement to provide open access transmission services; and (3) require the transmission of electric energy to an ultimate consumer if a notice of retail competition is in effect with respect to such consumer, or if a distribution utility offers such consumer open access to its delivery facilities. Prescribes guidelines for FERC's exercise of jurisdiction over rates, terms, and conditions for transmission services provided by a non-public transmitting utility. Permits the Secretary of Agriculture to participate or intervene in any FERC proceeding that directly affects an electric utility whose loans are made or guaranteed under the Rural Electrification Act of 1936 (REA). (Sec. 302) Grants the consent of Congress to an interstate compact to establish a regional transmission planning agency subject to specified FERC determinations. (Sec. 303) Cites circumstances under which: (1) a State regulatory authority and specified nonregulated distribution utilities may receive backup authority from FERC to impose a charge upon an ultimate consumer's receipt of electric energy; (2) FERC may order the establishment of an entity to independently operate and control interconnected transmission facilities and generators, and may order a transmitting utility to relinquish operating control over its transmission facilities to such entity; and (4) designated Federal utilities may participate in a regional transmission system operation. Title IV: Public Benefits - Amends PURPA to establish a Joint Board which shall establish a Public Benefits Fund upon petition of States and tribal governments wishing to participate in a Federal program providing: (1) affordable electricity service to low-income customers; (2) implementation of energy conservation, efficiency, and management measures; (3) consumer education; and (4) development of emerging electricity generation technologies. Prescribes implementation guidelines, including mandatory payment of a public benefits charge to a transmitting utility by each owner of an electric generating facility whose capacity exceeds one megawatt. (Sec. 402) Sets a deadline by which a retail electric supplier shall submit Renewable Energy Credits to the Secretary equal to the required annual percentage of total electric energy sold by such supplier to electric consumers in the calendar year (determined by the Secretary). Prescribes implementation guidelines. (Sec. 403) Requires each retail electric supplier to make net metering service available upon request to a retail electric consumer served or solicited by such supplier. Authorizes State imposition of: (1) additional requirements; and (2) a cap limiting the amount of net metering available in the State. Retains State authority to require a retail electric supplier to make net metering service available to a retail electric consumer. (Sec. 404) Amends PURPA to repeal the requirement that an electric utility enter into a new contract or obligation to purchase electric energy from cogeneration and small power production facilities. (Sec. 405) Mandates that a distribution utility allow interconnection with a facility if the facility owner is located in such utility's service territory and complies with a final Federal ruling governing such interconnection. (Sec. 406) Amends the REA to authorize grants for the purpose of increasing energy efficiency, lowering or stabilizing electric rates to end users, or providing or modernizing electric facilities for certain local governmental or Indian tribal units. Authorizes appropriations. (Sec. 407) Amends the Energy Policy Act of 1992 to direct the Secretary to establish an Indian tribal assistance program to meet electricity needs. Authorizes appropriations. (Sec. 408) Amends the Department of Energy Organization Act (DOE Organization Act) to authorize the Secretary to establish an Office of Indian Energy Policy and Programs. (Sec. 409) Authorizes appropriations to DOE for financial assistance to the State of Alaska to ensure the availability of adequate electrical power to the greater Ketchikan area, including the construction of an intertie. Title V: Regulation of Mergers and Corporate Structure - Repeals the Public Utility Holding Company Act of 1935. Public Utility Holding Company Act of 1999- Prescribes procedural guidelines for both FERC and State access to records of a holding company (including subsidiaries, associates, and affiliates) of a public utility or natural gas company. (Sec. 501) Precludes such State access to any person that is a holding company solely by reason of ownership of one or more qualifying facilities under PURPA. Instructs FERC to promulgate a final rule to exempt specified holding companies from such access requirements. Requires FERC to exempt any person or transaction from such access requirements if it finds that regulation of such person or transaction is irrelevant to the jurisdictional rates of a public utility or natural gas company. Retains the jurisdiction of FERC and State commissions to determine whether a public utility company or natural gas company may recover in rates any costs of affiliate transactions. Declares this Act inapplicable to: (1) the Government of the United States; (2) a State or local government; and (3) a foreign governmental authority not operating in the United States. Grants FERC certain FPA enforcement powers. Transfers from the Securities and Exchange Commission (SEC) to FERC all books and records that relate primarily to the functions vested in FERC by this Act. Authorizes appropriations. Amends the FPA to repeal its conflict of jurisdiction guidelines. (Sec. 502) Conditions electric company mergers and acquisitions upon prior FERC authorization. Subjects generation facilities to FERC jurisdiction (excluding entities with existing loans made or guaranteed under the REA of 1936). (Sec. 503) Requires FERC to order a public utility to submit a remedial action plan to remedy market power if: (1) FERC determines that there are markets in which a utility that owns or controls generation facilities has market power in electric energy sales for resale in interstate commerce; or (2), pursuant to State request for such an order, FERC determines that a generation facility-owning or -controlling electric utility has market power in retail electric energy sales in that State. Prescribes procedural guidelines. Title VI: Electric Reliability - Amends the FPA to provide for the establishment and enforcement of mandatory reliability standards to ensure the reliable operation of the bulk-power system. Grants FERC jurisdiction over: (1) the electric reliability organization; (2) all Affiliated Regional Reliability Entities (entities to which authority has been delegated to enforce compliance with reliability standards); (3) all system operators, and all users of the bulk-power system for purposes of approving and enforcing compliance with standards in the United States. Provides that, prior to the establishment of the Electric Reliability Organization (Organization), any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) may file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable.(Sec. 601) Prescribes procedural guidelines for FERC approval of: (1) applications competing for status as the Electric Reliability Council; and (2) Organization standards. Requires all users of the bulk-power system to comply with such standards. Mandates that: (1) the Organization take all appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with the governments of Canada and Mexico to effectuate compliance with Organization standards, and to provide for the effectiveness of the Organization's mission. Requires every system operator to be a member of the electric reliability organization, and of any Affiliated Regional Reliability Entity operating under an agreement applicable to the region in which the system operator operates or is responsible for the operation of a bulk-power system facility. Mandates compliance with the legal obligations of: (1) the Federal power systems; (2) the TVA; (3) the Bureau of Reclamation and the Corps of Engineers; and (4) Nuclear Regulatory Commission requirements. Empowers the Organization to take disciplinary and enforcement action. Directs the Organization to assess periodically the reliability and adequacy of the inter-connected bulk-power system in North America, and to report its findings and recommendations annually to FERC and to the Secretary. Provides for the assessment and recovery of implementation and enforcement costs incurred by the Organization and each Affiliated Regional Reliability Entity, respectively. (Sec. 602) Amends the DOE Organization Act to direct the Secretary to establish an Electricity Outage Investigation Board to investigate and report to the Secretary on a major bulk-power system failure in the United States to determine its causes, and to recommend actions to minimize the possibility of such future failures. (Sec. 603) Amends PURPA to authorize the Secretary to call and chair a meeting of State representatives to discuss provision of additional transmission capacity and related regional concerns. Title VII: Environmental Protection - Instructs the Administrator of the Environmental Protection Agency, in specified circumstances, to establish and administer an oxide of nitrogen (NOx) allowance cap and trade program in all States in which an NOx emission source is located. Prescribes program implementation guidelines. Title VIII: Federal Power Systems - Subtitle A: Tennessee Valley Authority - Amends the FPA to encompass within its jurisdiction the transmission facilities and transmission of electric energy and necessary associated services of: (1) the Tennessee Valley Authority (TVA); (2) the Bonneville Power Administration; (3) the Western Area Power Administration; and (4) the Southwestern Power Administration. (Sec. 803) Amends the Tennessee Valley Authority Act to: (1) subject the TVA to Federal antitrust laws; (2) authorize TVA wholesale sales of electric power to any person; (3) proscribe specified TVA retail sales; and (4) mandate renegotiation of long-term TVA power contracts with distributors. (Sec. 806) Amends the FPA to instruct FERC to promulgate certain regulations governing TVA's recovery of stranded costs resulting from wholesale or retail competition. Amends the TVA Authority Act to mandate that amounts recovered as stranded cost recovery charges be used to pay down TVA debt; but prohibits payments for additions to TVA generating capacity. Subtitle B: Bonneville Power Administration - Amends the FPA to prescribe procedural guidelines under which FERC shall provide for the imposition of surcharges for transmission services over the Bonneville Transmission System in order for the Bonneville Administrator to meet certain statutory cost recovery requirements. Subtitle C: Western Area Power Administration and Southwestern Area Power Administration - Prescribes procedural guidelines under which FERC shall provide for the imposition of surcharges for transmission services over the Transmission System of the Western Area Power Administration, and Southwestern Area Power Administration, respectively, in order for such Administrations to meet certain statutory cost recovery requirements. Title IX: Other Regulatory Provisions - Amends Federal bankruptcy law to: (1) grant priority status to obligations to comply with, and claims resulting from compliance with, Nuclear Regulatory Commission (NRC) regulations or orders governing the decontamination and decommissioning of licensed nuclear power reactors; and (2) prohibit discharge of such obligations and claims under State or Federal bankruptcy law. (Sec. 902) Amends the DOE Organization Act to instruct the Administrator of the Energy Information Administration to collect and publish information regarding the impact of wholesale and retail competition upon the electric power industry. (Sec. 904) Eliminates the mandate for antitrust review by the NRC with respect to license applications to construct or operate a commercial utilization or production facility. (Sec. 906) Amends the DOE Organization Act to direct the Secretary to issue a report comparing the impact of wholesale and retail competition on the efficiency of new and existing electric generating facilities.

Bill Number: S. 1048
Short Title: Comprehensive Electricity Competition Tax Act
Introduced: May 13, 1999
Sponsor: Senator Frank Murkowski (R-AK)

Purpose: To provide for a more competitive electric power industry, and for other purposes.

Summary: Title I: Amendments to Internal Revenue Code - Amends the Internal Revenue Code with respect to tax-exempt private activity bonds to declare that the determination whether any electric output facility bond issued before enactment of this Act (pre-effective date electric output facility bond) is a private activity bond shall be made without regard to any specified permissible competitive action taken by the issuer. Requires such a bond not to be a private activity bond or industrial development bond as of the date of enactment of this Act. Makes this Act inapplicable to any qualified refunding bond meeting certain criteria which is issued to refund a pre-effective date electric output facility bond if the net proceeds of the refunding bond are used within 90 days of issuance to redeem the refunded bond. Qualifies for tax exemption private activity bonds for electric output facilities issued after enactment of this Act, excluding any part of an issue for distribution property that operates at 69 kilovolts or less. Modifies special rules for nuclear decommissioning costs to eliminate cost-of-service as the maximum which a taxpayer may pay into a Nuclear Decommissioning Fund. Includes any distributed power property within 15-year depreciation property. Establishes an eight percent investment credit for combined heat and power (CHP) system property placed in service in calendar years 2000 through 2002. Precludes any carryback of the energy credit prior to the effective date of this Act, except for solar and geothermal energy property.

Bill Number: S. 1273
Short Title: Federal Power Act Amendments of 1999
Introduced: June 24, 1999
Sponsor: Senator Jeff Bingaman (D-NM)

Purpose: To amend the Federal Power Act, to facilitate the transition to more competitive and efficient electric power markets, and for other purposes.

Summary: Amends the Federal Power Act to include within the purview of Federal Energy Regulatory Commission (FERC) regulation of electric energy transmission in interstate commerce the unbundled transmission of electric energy sold at retail (but not bundled electric energy retail sales, or unbundled local distribution service that is subject to State regulation). (Sec. 2) Requires FERC, after consulting with appropriate State regulatory authorities, to determine by rule or order which electric energy transmission and delivery facilities are used for transmission in interstate commerce, subject to FERC jurisdiction, and which are used for local distribution subject to State jurisdiction. Redefines the transmission of electric energy in interstate commerce to include electric energy that will be consumed in a foreign country. Includes among public utilities subject to FERC jurisdiction over electric energy transmission any electric utility or Federal power marketing agency (including the Tennessee Valley Authority (TVA)), municipal utilities, and rural electric cooperatives not otherwise subject to FERC. Redefines a transmitting utility to include any public utility, qualifying cogeneration facility, qualifying small power production facility, or Federal power marketing agency that owns or operates electric power transmission facilities used for electric energy sales. (Sec. 3) Authorizes any person generating electric energy for sale (currently only for resale) to apply to FERC for an order requiring a transmitting utility to provide transmission services (currently only wholesale transmission services) to the applicant. Repeals the prohibition against mandatory retail wheeling and sham wholesale transactions. Limits FERC authority to order retail wheeling to sales permitted or required by State law. (Sec. 4) Declares that neither the silence of the Congress nor any Act of the Congress shall be construed to preclude a State or State commission, acting under State law, from requiring an electric utility subject to its jurisdiction to provide unbundled local distribution service to any electric consumer within such State. Requires any electric utility permitted or required by a State to provide unbundled local distribution service to any electric consumer within such State, to do so on a not unduly discriminatory basis. Preempts any State law, regulation, or order that results in unbundled local distribution service that is unjust, unreasonable, unduly discriminatory, or preferential. Authorizes a State or State commission to bar an electric utility from selling electric energy to an ultimate consumer using local distribution facilities if such utility or any of its affiliates owns or controls local distribution facilities and is not itself providing unbundled local distribution service. Declares that nothing in this Act shall prohibit a State or State regulatory authority from assessing a nondiscriminatory charge on unbundled local distribution service, the retail sale of electric energy, or the generation of electric energy for consumption by the generator within the State. (Sec. 5) Expresses the sense of the Congress that: (1) every electric energy consumer should have access to electric energy at reasonable and affordable rates; and (2) FERC and the States should ensure that competition in the electric energy business does not result in the loss of service to rural, residential, or low-income consumers. Requires any State or State commission that requires an electric utility subject to its jurisdiction to provide unbundled local distribution service to: (1) consider adopting measures to implement such policy; and (2) report to FERC on any measures so adopted. (Sec. 6) Instructs FERC to establish and enforce national electric reliability standards to ensure the reliability of the electric transmission system. Authorizes FERC to: (1) designate national and regional councils to promote such reliability; (2) incorporate into its own standards the operational standards adopted by such councils; and (3) enforce compliance with such standards on the part of any public or transmitting utility. (Sec. 7) Prescribes procedural guidelines under which FERC may order a transmitting utility to broaden or improve its facilities for the interstate transmission of electric energy. (Sec. 8) Authorizes FERC to order the formation of a regional transmission system, and to order any transmitting utility operating within such region to participate in it. Requires FERC to appoint a regional oversight board to oversee such system operation, and such board to appoint an independent system operator to operate the system. (Sec. 9) Establishes civil penalties for violations of this Act. (Sec. 10) Amends the Public Utility Regulatory Policies Act of 1978 to prohibit any State or State authority from barring a State regulated electric utility from recovering the cost of electric energy the utility is required to purchase from a qualifying cogeneration facility or qualifying small power production facility.

Bill Number: S. 1284
Short Title: Electric Consumer Choice Act
Introduced: June 4, 1999
Sponsor: Senator Don Nickles (R-OK)

Purpose: To amend the Federal Power Act to ensure that no State may establish, maintain, or enforce on behalf of any electric utility an exclusive right to sell electric energy or otherwise unduly discriminate against any consumer who seeks to purchase electric energy in interstate commerce from any supplier.

Summary: Amends the Federal Power Act to declare that nothing in Federal law shall be construed to authorize a State to: (1) establish, maintain, or enforce on behalf of any electric utility an exclusive right to sell electric energy; or (2) unduly discriminate against any consumer seeking to purchase electric energy in interstate commerce from any supplier. Declares that no supplier of electric energy, who would otherwise have a right of access to a transmission or local distribution facility because such facility is essential for the conduct of interstate commerce in electric energy, shall be denied access to transmission or local distribution facilities or precluded from engaging in electric energy retail sales on the grounds that such denial or preclusion is authorized by State action establishing, maintaining, or enforcing an exclusive right to sell, transmit, or locally distribute electric energy. Authorizes a State or State commission to prohibit an electric utility from selling electric energy to an ultimate consumer in such State if the utility (or any affiliate) owns or controls transmission or local distribution facilities and is not itself providing unbundled local distribution service in a State in which it owns or operates an electricity-generating facility. Repeals the Public Utility Holding Company Act of 1935. Declares that no electric utility shall be required to enter into a new contract or obligation to purchase or to sell electricity or capacity under the Public Utility Regulatory Policies Act of 1978.

Bill Number: S. 2071
Short Title: Electric Reliability 2000 Act
Introduced: February 10, 2000
Sponsor: Senator Slade Gorton (R-WA)

Purpose: To benefit electricity consumers by promoting the reliability of the bulk-power system.

Summary: Amends the Federal Power Act to provide for the establishment and enforcement of mandatory reliability standards to ensure the reliable operation of the bulk-power system. Grants the Federal Energy Regulatory Corporation (FERC) jurisdiction, for purposes of approving and enforcing compliance with standards in the United States, over: (1) the electric reliability organization; (2) all Affiliated Regional Reliability Entities (entities to which authority has been delegated to enforce compliance with reliability standards); (3) all system operators; and (4) all users of the bulk-power system. Provides that, prior to the establishment of the Electric Reliability Organization (ERO), any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) may file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable. Prescribes procedural guidelines for FERC approval of: (1) applications competing for status as the Electric Reliability Council; and (2) ERO standards. Requires all users of the bulk-power system to comply with such standards. Mandates that: (1) the ERO take all appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with the governments of Canada and Mexico to effectuate compliance with ERO standards, and to provide for the effectiveness of the Organization's mission. Requires every system operator to be a member of the ERO and of any Affiliated Regional Reliability Entity operating under an agreement applicable to the region in which the system operator operates or is responsible for the operation of a bulk-power system facility. Grants the ERO disciplinary and enforcement powers. Directs the ERO to assess periodically the reliability and adequacy of the inter-connected bulk-power system in North America and to report its findings and recommendations annually to FERC and to the Secretary of Energy. Provides for the assessment and recovery of implementation and enforcement costs incurred by the ERO and each Affiliated Regional Reliability Entity, respectively. Sets forth antitrust defenses for activities undertaken by the ERO, its members, or members of an affiliated regional reliability entity. Instructs FERC to establish a regional advisory body on the petition of the Governors of at least two-thirds of the States within a region that have more than one-half of their electrical loads served within the region. Restricts such body to the 48 contiguous States. Restricts ERO authority to develop, implement, and enforce compliance exclusively to reliability standards governing the bulk-power system. Denies both the ERO and FERC any authority under this Act to set and enforce compliance with adequacy or safety standards governing either electric facilities or services. Declares that nothing in this Act preempts State authority to take action to ensure safety, adequacy, and reliability of electric service within a State, as long as such action is not inconsistent with any organization standard. Empowers FERC to: (1) issue a final order determining whether a State action is inconsistent with an ERO standard; and (2) stay the effectiveness of any State action, after consultation with ERO, and pending issuance of a final FERC order.

Bill Number: S. 2098
Short Title: Electric Power Market Competition and Reliability Act, Nuclear Decommissioning Assurance Act, and Public Utility Holding Company Act of 1999
Introduced: February 24, 2000
Sponsor: Senator Frank Murkowski (R-AK)

Purpose: To facilitate the transition to more competitive and efficient electric power markets, and to ensure electric reliability.

Summary: Title I: Amendments to the Federal Power Act - Amends the Federal Power Act to: (1) place within the ambit of Federal regulation unbundled interstate transmission of electric energy sold at retail; and (2) place within the jurisdiction of the State within which the energy is consumed the bundled retail sale of electric energy, unbundled local distribution service, and unbundled retail sale of electric energy and attendant facilities. (Sec. 101) Directs the Federal Energy Regulatory Commission (FERC) to determine which electric energy delivery and transmission facilities fall within either Federal or State jurisdictions. (Sec. 102) Repeals the prohibition against mandatory retail wheeling and sham wholesale transactions. Precludes FERC authority to issue promulgations that require or are conditioned upon the transmission of electric energy directly to an ultimate consumer, or to or for the benefit of an electric or other utility if such electric energy would be sold directly to an ultimate consumer, unless applicable State law requires or permits the relevant seller to sell it to such consumer. (Sec. 103) Identifies areas within the ambit of State jurisdiction to impose public interest requirements, including: (1) distribution system reliability; (2) universal service; (3) assured service to low-income, rural, and remote consumers; (4) recovery of industry transition costs; and (5) transition costs of electricity workers adversely affected by restructuring. (Sec. 104) Prescribes procedural guidelines for FERC approval of: (1) regional transmission organizations; (2) transmission construction and expansion planning proposals; and (3) pricing policies for regional transmission organizations. (Sec. 105) Recognizes State authority to impose reciprocity requirements on an electric utility selling electric energy to an ultimate consumer in such State if the utility or any of its affiliates owns or controls transmission or local distribution facilities and is not itself providing unbundled local distribution service in a State in which it owns or operates a facility used for electric energy generation. (Sec. 107) Expresses the sense of Congress that public utilities are entitled to fully recover all prudently incurred wholesale and retail costs that become stranded as a result of changes in public policy with respect to competition and industry structure. Title II: Repeal of PURPA Mandatory Purchase Requirement - States that, with respect to new contracts, no electric utility shall be required to enter into a new contract or obligation to purchase or sell electricity or capacity under the Public Utility Regulatory Policies Act of 1978 (PURPA). Preserves existing contract rights and remedies under such Act. (Sec. 202) Requires FERC to promulgate and enforce regulations to ensure that an electric utility shall not be required to absorb costs associated with PURPA-mandated purchases of electricity or capacity from a qualifying cogeneration or small power production facility prior to the date of enactment of this Act. Title III: Electric Reliability - Amends the FPA to provide for the establishment and enforcement of mandatory reliability standards to ensure the reliable operation of the bulk-power system. Grants FERC jurisdiction over: (1) the Electric Reliability Organization; (2) all Affiliated Regional Reliability Entities (entities to which authority has been delegated to enforce compliance with reliability standards); (3) all System Operators, and all Users of the Bulk-Power System for purposes of approving and enforcing compliance with standards in the United States. Provides that, before establishment of the Electric Reliability Organization (Organization), any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) shall file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable. (Sec. 301) Prescribes procedural guidelines for FERC approval of: (1) applications competing for status as the Electric Reliability Council; and (2) Organization Standards. Requires all Users of the Bulk-Power System to comply with such standards. Mandates that: (1) the Organization take all appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with the governments of Canada and Mexico to effectuate compliance with Organization standards, and to provide for the effectiveness of the Organization's mission. Requires every System Operator to be a member of the Electric Reliability Organization, and of any Affiliated Regional Reliability Entity operating under an agreement applicable to the region in which the System Operator operates or is responsible for the operation of a Bulk-Power System facility. Empowers the Organization to take disciplinary and enforcement action. Directs the Organization to assess periodically the reliability and adequacy of the inter-connected Bulk-Power System in North America, and to report its findings and recommendations annually to FERC and to the Secretary. Provides for the assessment and recovery of implementation and enforcement costs incurred by the Organization and each Affiliated Regional Reliability Entity, respectively. (Sec. 302) Establishes a rebuttable presumption that activities undertaken pursuant to this Act by either the Electric Reliability Organization, its members, or members of an Affiliated Regional Reliability Entity to be in compliance with the antitrust laws. (Sec. 304) Instructs the Secretary of Energy, upon the petition of the Governors of at least two-thirds of the States within a region that have more than one-half of their electrical loads serviced within the region, to establish a regional advisory body to provide advice to an Affiliated Regional Reliability Entity, the Electric Reliability Organization, or FERC. Declares this title inapplicable to Alaska or Hawaii. Title IV: Repeal of the Public Utility Holding Company Act of 1935 and Enactment of the Public Utility Holding Company Act of 1999 - Public Utility Holding Company Act of 1999 - Repeals the Public Utility Holding Company Act of 1935 effective one year after enactment of this title. (Sec. 405) Prescribes procedural guidelines for: (1) FERC access to records of a public utility or natural gas holding company (including subsidiaries, associates and affiliates); and (2) and State access to records of a public utility in a holding company system. (Sec. 407) Instructs FERC to promulgate a final rule to exempt from such Federal access requirements any holding company with respect to one or more: (1) qualifying facilities under PURPA; (2) exempt wholesale generators; or (3) foreign utility companies. Requires FERC to exempt any person or transaction from such access requirements if it finds that their regulation is irrelevant to the jurisdictional rates of a public utility or natural gas company. (Sec. 408) Retains the jurisdiction of FERC and State commissions to determine whether a public utility company or natural gas company may recover in rates any costs of affiliate transactions. (Sec. 409) Declares this Act inapplicable to: (1) the United States; (2) a State or its political subdivision; and (3) a foreign governmental authority not operating in the United States. (Sec. 411) Grants FERC certain FPA enforcement powers. (Sec. 414) Transfers from the Securities and Exchange Commission to FERC all books and records that relate primarily to the functions vested in FERC by this Act. (Sec. 415) Authorizes appropriations. (Sec. 416) Amends the FPA to repeal its conflict of jurisdiction guidelines. Title V: Nuclear Decommissioning - Nuclear Decommissioning Assurance Act - Permits a nuclear power facility licensee to petition the Nuclear Regulatory Commission (NRC) for a determination of whether: (1) adequate amounts are deposited in its nuclear decommissioning trust fund; and (2) future funding for any nuclear power plant is assured for any nuclear power plant owned in whole or in part by such licensee. (Sec. 503) Sets a timeframe by which the NRC must issue a determination whether the nuclear decommissioning trust fund and the currently approved decommissioning recovery cost rates are adequate to ensure full and safe facility decommissioning. Details mandatory NRC considerations. (Sec. 504) Amends the Federal Power Act to authorize any entity, including a public power entity, responsible for decommissioning a nuclear power facility in whole or in part, which has obtained an NRC finding under this title, to petition FERC for an order approving rates and charges in connection with the transmission or wholesale sale of electric energy to collect all or part of the revenues necessary to ensure adequate funding to satisfy its decommissioning obligations. Instructs FERC to: (1) find certain decommissioning costs and revenue requirements, determined necessary by the NRC, to be just and reasonable, prudently incurred, and recoverable in transaction or wholesale rates; (2) find the remainder of such costs which are not recovered to be just and reasonable, prudently incurred, and recoverable through a nonbypassable charge or rate; and (3) enforce any rule or order designed to ensure collection of adequate decommissioning revenues.

Bill Number: S. 2570
Short Title: (No short title)
Introduced: May 16, 2000
Sponsor: Senator Bill Frist (R-TN)

Purpose: To provide for the fair and equitable treatment of the Tennessee Valley Authority and its ratepayers in the event of restructuring of the electric utility industry.

Summary: Amends the Federal Power Act (FPA) to repeal: (1) hearing, notice and review requirements relating to interconnection or wheeling orders to determine whether they would result in illegal electric power sales or delivery outside the Tennessee Valley Region; and (2) certain requirements for equitability within territory restricted electric systems (transmission within the Tennessee Valley Region). (Sec. 2) Amends the Tennessee Valley Authority Act of 1933 to repeal restrictions placed upon the Tennessee Valley Authority (TVA) to sell or deliver power beyond the area for which it was the primary source of power on July 1, 1957. (Sec. 3) Authorizes TVA to sell electric power at retail to electric consumers that either already have a contract with TVA or consume the electric power within a distributor service area in which a non-TVA regulatory authority permits other suppliers to sell electric power to retail consumers. Waives application of certain requirements to any TVA sale of excess electric power for use outside the Tennessee Valley Region. (Sec. 4) Requires TVA to furnish distributors with detailed information on plans and projections for the potential acquisition of new electric generating facilities and to grant them notice and opportunity to comment. (Sec. 5) Directs TVA and its distributors make good faith efforts to renegotiate existing long-term contracts. Prescribes guidelines for a distributor, in the event negotiations fail, to: (1) terminate the existing contract to purchase wholsesale electric energy from TVA; or (2) reduce the quantity of wholesale power requirements under the existing contract by up to ten percent. Prohibits TVA from discriminating unduly against a distributor for exercising such rights or for being a partial requirements customer. (Sec. 6) Subjects TVA transmission and local distribution of electric power to FPA jurisdiction to the same extent as a public utility transmission of electric power in interstate commerce is subject to such jurisdiction. (Sec. 7) Permits a distributor to elect to avoid certain TVA regulatory authority regarding certain future TVA wholesale electric power sales. Replaces TVA regulatory authority over distributors with that of the distributor's own governing body. Amends the Public Utilities Regulatory Policies Act to redefine "State regulatory authority" so as to remove TVA as a State agency with ratemaking authority over sales of electric energy by any electric utility. (Sec. 8) Prescribes procedural guidelines for Federal Energy Regulatory Commission (FERC) approval of TVA plans for recovery of its stranded costs. Authorizes TVA to recover wholesale stranded costs that may arise from renegotiation of power contracts with distributors to the extent authorized by FERC. Prohibits recovery of any such costs related to loss of sales revenues. Bars TVA use of such recovered proceeds to pay for additions to TVA generating capacity. Requires TVA stranded cost recovery charges to be stated separately on customer billing. Mandates that the annual TVA management report to Congress include: (1) long-range financial plans; (2) source of funds used for TVA capacity additions; and (3) reduction of publicly-held TVA debt. (Sec. 9) Subjects TVA to Federal antitrust jurisdiction with respect to its electric power and transmission systems.

Bill Number: S. 2886
Short Title: Consumer Empowerment and Electricity Deregulation Act of 2000
Introduced: July 18, 2000
Sponsor: Senator Phil Gramm (R-TX)

Purpose: To provide for retail competition for the sale of electric power, to authorize States to recover transition costs, and for other purposes.

Summary: Title I: Consumer Choice and Competition for Electric Suppliers - Amends the Public Utility Regulatory Policies Act of 1978 to set forth retail electric competition parameters for State-regulated local distribution systems and for nonregulated local distribution systems, including the authority to recover stranded costs. (Sec. 101) Empowers the Federal Energy Regulatory Commission (FERC)to enforce compliance with this Act. (Sec. 102) Terminates the requirement that electric utilities enter into new contracts for the sale or purchase of electric energy or capacity. Amends the Federal Power Act to: (1) declare that bundled and unbundled electric energy transmission service falls within the purview of the Act, including the sale of electric energy at wholesale in interstate commerce; and (2) grant FERC jurisdiction over facilities used to provide bundled and unbundled electric energy transmission services in interstate commerce, make sales of electric energy intended for resale, or establish and enforce bulk power system reliability standards implemented by a regional transmission organization. Title II: Public Utility Holding Companies - Public Utility Holding Company Act of 2000 - Repeals the Public Utility Holding Company Act of 1935. (Sec. 205) Prescribes procedural guidelines for Federal and State access to records of a holding company (including subsidiaries, associates, and affiliates) of a public utility or natural gas company. (Sec. 206) Precludes such State access to any person that is a holding company solely by reason of ownership of one or more qualifying facilities under the Public Utility Regulatory Policies Act of 1978. (Sec. 207) Instructs FERC to promulgate a final rule to exempt such holding companies, as well as exempt wholesale generators and foreign utility companies, from such access requirements. Requires FERC also to exempt from such access requirements any person or class of transactions that is not relevant to the jurisdictional rates of a public utility or natural gas company. (Sec. 208) Retains the jurisdiction of FERC and State commissions to determine whether a public utility company or natural gas company may recover in rates any costs of affiliate transactions. (Sec. 209) Declares this Act inapplicable to: (1) the United States; (2) a State or its political subdivision; and (3) a foreign governmental authority not operating in the United States. (Sec. 211) Grants FERC certain Federal Power Act enforcement powers. (Sec. 214) Transfers from the Securities and Exchange Commission to FERC all books and records that relate primarily to the functions vested in FERC by this Act. (Sec. 215) Amends the Federal Power Act to repeal its conflict of jurisdiction guidelines. (Sec. 216) Authorizes appropriations. Title III: Tax Provisions - Amends the Internal Revenue Code regarding tax-exempt bond financing of certain electric facilities, to exclude specified open access transactions from the definition of "private business use" (and thus from qualification for tax-exempt status) in connection with an electric output facility owned by a governmental unit. (Sec. 301) Permits certain bond issuers to make an irrevocable election to terminate certain tax-exempt financing for electric output facilities. (Sec. 302) Revises IRC special rules for nuclear decommissioning costs to repeal the limitation placed on deposits paid into the Nuclear Decommissioning Reserve Fund. (Sec. 303) Revises the 85-percent income test for qualification of a mutual or cooperative electric company for tax-exempt status, which requires that 85 percent or more of income consists of amounts collected from members for the sole purpose of meeting losses and expenses. Declares that, to meet such test, no income shall be taken into account from revenues received from nonmembers solely as a result of conforming transmission and distribution operations to meet provisions of a Federal or State plan designed to provide customer choice in electric power supply.